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India into Another Trouble: IIP Downgrade
By siliconindia
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Wednesday, 14 December 2011, 02:10 IST |
2 Comments
2. Stock Investor:
The Euro zone crisis has already raised eyebrows of Investors around the world and has put them in dilemma. Adding to the fact that Indian equities are the worst performing shares in Asia, the IIP numbers will make investors more nervous and depressed. The tumbling of IIP numbers will mean lower output by industrial companies, which in turn will reflect on the revenues and profits of the company. If the profit of the company is low then the earnings per share decreases. As EPS decreases, stock valuation also downgrades. Our major stock investors are foreigners who have already lost confidence in us after seeing the sensex being so very volatile. They are now searching for alternatives or are investing in other places which are much crisis proof. The corporate sector is already seeing a black slash with foreign investors being jittery in investing in any news projects.
